Internet Companies

[ImElkay]

Hey guys. Random question. Does it cost internet companies more to give you higher upload and download speeds?  Do they just ramp up the prices ridiculously high for no reason?

 

[Bonsai99]

Does it cost internet companies more to give you higher upload and download speeds?  Do they just ramp up the prices ridiculously high for no reason?

Yes and Yes

[helping]

Yes but not nearly as much as they charge for more

[ttam]

It really doesn't cost them any more. You are paying an easy 1000% markup.

[Tocsin_786]

it doesnt, its all monopolies (in america) i can be enjoying my  60 MBPS to watch netflix in 4K but it doesnt go above 480p because of verizon. my cousin could be getting the same speed as me but his area has no competition so they give him 10 down and 1.5 up

 

its all a scam 

[Darren]

That depends on where you live and internet is serviced in your area, because as far as my country is concerned, every one of you is wrong.

 

In New Zealand, we have two separate systems.

 

We have traditional copper wiring which serves xDSL and POTS which is all owned and maintained by a single entity. That entity sells service for Retail Service Providers to sell to the public, as a wholesale system. We have a government based commission which oversees the costing of this and enforces regular price cuts as time goes on.

 

Our second system, which is slightly better runs with the idea of a Local Fibre Company and the Retail Service Provider. Same thing, but more localised. An RSP has to peer directly with the LFC in the area which immediately sets back the big guys since now they have to establish equipment in each main city which allows the little guys to essentially step in and compete. Current pricing for this does differ between 30/10, 50/20, 100/50, 200/200 etc, all of which do DFA services as well so when the question is asked, "Does it cost my ISP to deliver me faster speeds?", the answer is yes.

 

Your actual answer is: It depends.